The draft legislation was released earlier today and is largely as discussed in the consultation document and very similar to the off-payroll rules in the public sector. However it will be subject to scrutiny and possible change as it makes its way through Parliament to become the Finance Act. There were a number of outstanding questions following the end of the public consultation, all of which we focus on in our response, along with the key points likely to have a material effect on the industry.
As we approach the end of July, contractors who have to make payments on account of their 2018/19 personal tax liabilities should hopefully be in a financial position to make those payments by the due date of 31 July.
Over the past year or so much has been written and said about this HMRC creation and it is destined to figure prominently in the lead up to April 2020 when the off-payroll working in the private sector rules are scheduled to come into effect. Although we don’t know yet what the final format of the tax legislation will look like, we can be pretty confident that CEST in its current or slightly amended form will be at the operational end of it.
The consultation on “off-payroll working rules from April 2020” was published on 5th March 2019. The proposals are broadly similar to the public sector, however there are some key developments which will apply equally to public sector engagements from April 2020.
This year’s Spring Statement from the Chancellor of the Exchequer has been rather overshadowed by Brexit but hidden amongst the various promised consultations appeared an HMRC report titled ‘Tackling tax avoidance, evasion and other forms of non-compliance’. We thought we’d share with you our view as to where we are now and where HMRC are planning to go next.
On 5th March the consultation document was released for the private sector. The consultation was largely as expected although HMRC clearly wants to place even more responsibility and liability on the supply chain than in the public sector.